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CHAPTER 14
Global Promotion Strategies
CHAPTER OUTLINE
LXXXVII. Global Promotion Strategies
A. Pull Strategies
B. Push Strategies
LXXXVIII. Personal Selling
A. International Selling (Multicountry Sales Force)
B. International Sales Negotiations
C. Local Selling (Single-Country Sales Force)
LXXXIX. Global Account Management
G. Corporate Social Responsibility
XCII. Conclusion
CHAPTER OBJECTIVES
At the end of this chapter, students should be able to do the following:
List the major factors that determine a firms ability to use a push or a pull promotion strategy in
different national markets.
Contrast the benefits to the international marketer of using an international sales force with
those of using local sales forces.
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Give examples of international public relations disasters, and suggest ways in which global
marketers can promote the goodwill of their firms.
Explain the role of corporate social responsibility in global marketing.
QUESTIONS FOR DISCUSSION
1. What difficulties could arise if a U.S. salesperson expected to make a sale of industrial
equipment during a two-week visit in China?
Cultural differences may generate several difficulties for a U.S. salesperson in China. First,
language barriers will have to be overcome. The salesperson may not speak Chinese and may
2. Why do you think many countries restrict the promotional use of sweepstakes and other
games of chance?
Governments may fear the addictive nature of sweepstakes and other games of chance. They
3. What types of companies would you suggest sponsor the next Olympic Games? How
would such firms profit from their associations with the Olympic Games?
Consumer goods with global appealparticularly those with readily identifiable brand names
and logosare best suited to sponsor an international sporting event like the Olympic Games.
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4. Do you support UNICEF’s decision to oppose the donation of baby formula to African
hospitals? Why or why not?
Some students may agree with UNICEFs decision, citing that not all mothers in Africa are
CASE 14.1: THE SOUTH AMERICAN SALES DILEMMA
The hero of this case, Jay Bishop, has recently been promoted from director of North American
sales to director of global sales at Intelicon, a worldwide provider of digital marketing services.
Lacking much sales experience outside of the United States, Jay struggles to evaluate the sales
performance of Intelicons Brazilian subsidiary.
An interesting way to start the conversation about the case is to ask students to grade Jays ability
to assess the sales performance of the Brazilian subsidiary. Most students quickly and effusively
award him a grade of a C or worse. Students awarding low grades should be asked to diagnose
what Jay has done wrong. Most will quickly point out Jays inability to understand Brazilian
(collectivist) culture. It can be useful then to point out Jays lack of international management
experience (which may be the root cause of his cultural insensitivity). It may also be speculated
that perhaps Jay has never taken an international marketing course. (Otherwise he certainly should
have known better than to ignore cross-cultural differences in personal interaction and sales
promotion!)
DISCUSSION QUESTIONS
1. What might explain the lower ratio of sales to sales-calls in Latin America compared to
the United States?
Several factors that could account for the lower ratio are discussed in Chapter 14. These
include:
The product is likely newer to this market than to the United States. This would account
for more time to sale.
2. In what ways might cultural differences explain differences in personal selling between
Brazil and the United States?
In collectivist cultures like Brazil where social networks determine trustworthiness, cold
calling may not be an effective sales technique. More time may need to be invested in finding
and developing social contacts that can provide introductions to potential buyers.
3. What advice would you give Jay?
Most students are quite critical of Jay, dismissing his assumptions of the Brazilian subsidiary
performance as ethnocentric. A lively discussion often ensues when students are probed to account
for how differently they would have handled Jays situation.
CASE 14.2: FLYING TO ARMENIA
This case exposes the student to the promotional campaigns launched by British Airways upon
entering the Armenian market. The case demonstrates how different promotions can be used for
different communications, targeting different segments.
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Many students do not know where Armenia is located or much about its history. It can be useful to
begin the discussion of the case by showing students Armenias location on a world map. Note the
small size of the country (11,506 square miles) and its population (3 million). Ask the students why
British Airways would spend time and energy developing promotions for such a small country.
Students usually are quick to point out that in a landlocked nation such as Armenia, air travel is
particularly attractive for international travel. The discussion should also highlight that the
Armenian market extends beyond the borders of the country and its resident population; it also
includes a diaspora community all around the world (the diaspora is estimated to be around 7
million outside of Armenia).
DISCUSSION QUESTIONS
1. For each of the five promotions discussed in the case, identify the target market, explain
the motivation behind the promotion, and suggest ways in which to measure the success
of the promotion.
Sponsorship of the Third Annual Chamber Music Festival. The target for this promotion
was its older adult segment, those with significant disposable income. The event
Airways brand.
Donations Made to Orphanages for Each Ticket Sold. Although many consumers might
find this promotion appealing, the family segment is the central target for this program.
Phone-in Contest in Which Consumers Answer Questions about British Airways Posed
in Local Media. Using multiple media channels (press, TV), this promotion targets a
Executive Club Tie-in with the Wheel Club. This promotion is aimed at an expatriate
business audience. Both British Airways and the Wheel Club benefit from this co-
sponsored promotion. Members of British Airways loyalty club, the Executive Club,
members.
“Where in the World” Competition. A young, leisure-traveler segment was the target
for this promotion. The promotion encouraged people to imagine a romantic destination
2. Why do you think each of these promotions worked well in the Armenian market?
Sponsorship of the Third Annual Chamber Music Festival. Promotion planners were
able to bring diaspora musicians from London to Yerevan to play in the concert.
3. Would these promotions be as successful in your country? Why or why not?
Sponsorships of cultural events, like the chamber music festival, are common in the United
States. Although such sponsorships typically are not designed to educate participants about a
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CASE UPDATE